Viewer's private information consumption generates external benefits for society, because information improves the ability of voters to control politicians. Our study compares two settings in a free-to-air TV market: a differentiated duopoly of private channels and an oligopoly with both private channels and a public service broadcaster broadcasting information as well as entertainment programs. We find that welfare effects of public service broadcasting depend on its program design and cost efficiency, the external benefits of voter's information, and the magnitude of lost rents from the advertising market.

en_US

dc.language.iso

eng

en_US

dc.publisher

Techn. Univ., Inst. für Volkswirtschaftslehre Braunschweig

en_US

dc.relation.ispartofseries

Economics Department Working Paper Series 13

en_US

dc.subject.jel

L82

en_US

dc.subject.jel

D72

en_US

dc.subject.jel

L32

en_US

dc.subject.ddc

330

en_US

dc.subject.keyword

Media

en_US

dc.subject.keyword

two-sided TV market

en_US

dc.subject.keyword

information externalities

en_US

dc.title

Welfare effects of public service broadcasting in a free-to-air TV market